Generally, you want to avoid dipping into retirement. While using the money, you would lose out on growth. You may have to pay some penalties. You may also have to pay tax. It can eat up up to 40% of your money. Leave it grow.

You should be building an e-fund as best you can while paying your debt. This is a personal choice. 3-6 months living expenses is commonly suggested. It takes time to build that much though. Debt continues to grow, usually faster than the interest you can earn while saving, even in a Money Market. You might consider paying some ratio of debt/e-fund. 70/30, 85/15, whatever. My personal take is kill the debt as fast as possible, so I was aggressive and had little in the way of an e-fund. Your milage may vary.

If you are having problems, check out the credit board. They are good at helping people figure out good re-payment plans.

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